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Facts
The assessee's claim for exemption under Section 11 for AY 2019-20 was denied under Section 143(1) because the Audit Report in Form 10B was filed belatedly (on 08.12.2020 against the due date of 30.11.2020). The CIT(A) confirmed this denial and rejected the assessee's appeal.
Held
The Tribunal condoned the 26-day delay in filing the present appeal. Noting that the Commissioner of Income Tax (Exemption) had already condoned the delay in filing Form 10B for AY 2019-20, the Tribunal restored the matter to the Assessing Officer to freshly examine the claim of exemption under Section 11 of the Act.
Key Issues
Whether the delay in filing the appeal should be condoned, and whether the claim for exemption under Section 11 can be denied solely for belated filing of Form 10B when the delay has been condoned by the Commissioner of Income Tax (Exemption).
Sections Cited
250, 143(1), 11
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI GEORGE GEORGE K., VP & SHRI INTURI RAMA RAO, AM
O R D E R Per: George George K., VP This appeal at the instance of the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-2, Ludhiana [CIT(A)], dated 01.07.2024 passed u/s. 250 of Income Tax Act, 1961 (hereinafter "the Act"). The relevant assessment year is 2019-20.
There is a delay of 26 days in filing the appeal. The assessee has filed a petition seeking condonation of delay stating the reasons for the delay in filing the appeal. We have perused the reasons stated and we are of the view that there is sufficient cause for late filing of Mount Carmel Education Society this appeal and no latches can be attributed to the assessee. Hence, we condone the delay of 26 days in filing this appeal and proceed to dispose off the same of merits.
Brief facts of the case are that the assessee’s claim for exemption u/s. 11 of the Act was denied vide intimation issued u/s. 143(1) of the Act. The reason for denying the claim of exemption u/s. 11 of the Act was that Audit Report in Form 10B was filed belatedly. The due date for filing the Audit Report was on or before 30.11.2020. However, Form 10B was filed on 08.12.2020.
Aggrieved by the intimation issued, assessee filed appeal before the first appellate authority. The CIT(A) confirmed the denial of claim u/s. 11 of the Act and rejected the appeal of the assessee.
Aggrieved by the order of the CIT(A), assessee filed the present appeal before the Tribunal. The learned A.R. submitted that the Commissioner of Income Tax (Exemption) vide his order dated 13.03.2025 had condoned the delay in filing Form 10B for the relevant assessment year, i.e. AY 2019-20. In light of the same it was submitted by the learned A.R. that the matter may be restored to the file of the AO to examine the claim of exemption u/s. 11 of the Act.
The learned Sr. DR was duly heard.
We have heard the rival submissions and perused the material available on record. The claim of exemption u/s. 11 of the Act was Mount Carmel Education Society denied for the sole reason that Audit Report in Form 10B was not filed before the due date prescribed. The learned A.R. has placed on record a copy of the order of the Commissioner of Income Tax (Exemption) wherein the delay in filing the Audit Report in Form 10B was condoned for AY 2019-20. In the light of the aforesaid order of the Commissioner of Income Tax (Exemption) we restore the matter to the file of the AO to examine the claim of exemption u/s. 11 of the Act afresh. It is ordered accordingly.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 3rd April, 2025.